The pace of market activity has decelerated in anticipation of the holiday season. Personally, I derive satisfaction from scrutinizing financial charts, a practice I indulge in irrespective of the time of year.
Our assessment will have to be deferred until the forthcoming week, at which point we will ascertain whether an adequate accumulation has transpired to facilitate an upward market trajectory. It is prudent to establish predefined triggers, such that in the event of price movement resembling a spring setup, one can capitalize on the opportunity without idling away valuable time. It is imperative to recognize that for an upward market movement to occur, there must be a sufficient influx of buying activity, typically manifested through an ascending price bar (i.e., the current bar's closing price exceeds that of the preceding bar). The volume associated with this upward bar should exhibit an incremental trend; however, it is essential to avoid excessive volume spikes, as they may signal underlying supply pressures overpowering demand dynamics.
In cases where market ascent is accompanied by notably low volume levels, it is crucial to discern that this presents a deceptive facade. Such diminished volume is attributable to institutional investors, often referred to as "smart money," abstaining from participation in the upward move, often indicative of perceived market fragility. Although the market may exhibit upward movement, it lacks the engagement of influential traders. It is worth emphasizing that without the involvement of the 'smart money,' any upward trajectory is unlikely to sustain significant gains.
Our assessment will have to be deferred until the forthcoming week, at which point we will ascertain whether an adequate accumulation has transpired to facilitate an upward market trajectory. It is prudent to establish predefined triggers, such that in the event of price movement resembling a spring setup, one can capitalize on the opportunity without idling away valuable time. It is imperative to recognize that for an upward market movement to occur, there must be a sufficient influx of buying activity, typically manifested through an ascending price bar (i.e., the current bar's closing price exceeds that of the preceding bar). The volume associated with this upward bar should exhibit an incremental trend; however, it is essential to avoid excessive volume spikes, as they may signal underlying supply pressures overpowering demand dynamics.
In cases where market ascent is accompanied by notably low volume levels, it is crucial to discern that this presents a deceptive facade. Such diminished volume is attributable to institutional investors, often referred to as "smart money," abstaining from participation in the upward move, often indicative of perceived market fragility. Although the market may exhibit upward movement, it lacks the engagement of influential traders. It is worth emphasizing that without the involvement of the 'smart money,' any upward trajectory is unlikely to sustain significant gains.